|Scott Browder report for Myers Park neighborhood, Charlotte, NC
Average Price Per Square Foot
Rolling 12 Months
Based on data available as of November 29, 2011
A hot market is a “seller’s market.” During a seller’s market, properties can sell within a few days of being listed and there are often multiple offers. Sometimes homes even sell above the asking price. Though most buyer’s want to get a “deal” on a home, reducing your offer by even a few thousand dollars could mean that someone else will get the home you desire.
A slow market is a “buyer’s market. During a buyer’s market properties may languish on the market for some time and offers may be few and far between. Prices may even decline temporarily. Such a market would allow you to be more flexible in offering a lower price for the home. Even if your offered price is too low, the seller is likely to make some sort of counter-offer and you can begin negotiations in earnest.
More often than not, the market is simply “steady,” or in transition. When a market is steady, no real rules apply on whether you should make an offer on the high end of your range or the low end. You could find yourself in a situation with multiple offers on your desired house, or where no one has made an offer in weeks.
Transition markets are more difficult to define. If the economy slows unexpectedly, as it did in the early nineties, people who buy on the high end of a seller’s market (like the late eighties) could find their home loses value for several years. So far, no one has proven reliable in predicting when markets change or how good or bad the real estate market will become.
When a lender reviews your loan package for approval, one of the things they are concerned about is the source of funds for your down payment and closing costs. Most likely, you will be asked to provide statements for the last two or three months on any of your liquid assets. This includes checking accounts, savings accounts, money market funds, certificates of deposit, stock statements, mutual funds, and even your company 401K and retirement accounts.
If you have been moving money between accounts during that time, there may be large deposits and withdrawals in some of them.
The mortgage underwriter (the person who actually approves your loan) will probably require a complete paper trail of all the withdrawals and deposits. You may be required to produce cancelled checks, deposit receipts, and other seemingly inconsequential data, which could get quite tedious.
Perhaps you become exasperated at your lender, but they are only doing their job correctly. To ensure quality control and eliminate potential fraud, it is a requirement on most loans to completely document the source of all funds. Moving your money around, even if you are consolidating your funds to make it “easier,” could make it more difficult for the lender to properly document.
So leave your money where it is until you talk to a loan officer.
Oh…don’t change banks, either.
With so much mixed media about real estate today, I believe consumers who are considering purchasing a home are overwhelmed by what to believe and, against their best interests, have begun to shut it all out. By doing this, they are missing an unbelievable opportunity. Keeping this in mind, I promise to make this simple and to the point.
One of the main reasons to purchase a home now is affordability, which has never been better. Why you ask? Increased inventory is to the advantage of buyers and that, combined with historically low interest rates, has created an ideal scenario for home buyers.
However, interest rates are ticking up which is causing some potential homeowners to rethink their decision. A recent study for NAR shows that over the past 12 years, the net worth of the typical homeowner has ranged between 31 and 46 times that of the net worth of the typical renter.
Proving still that housing remains, even in a market you may have concerns about, a solid investment.
Buying a home can be one of your most significant investments in life. Not only are you choosing your dwelling place, and the place in which you will bring up your family, you are most likely investing a large portion of your assets into this venture. The more prepared you are at the outset, the less overwhelming and chaotic the buying process will be. Below is a link to my website that will provide you with detailed information to assist you in making an intelligent and informed decision. This information is vital information that could help you get what you want out of the home buying experience.